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flag Canada Canada: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

One man business.
Number of partners: 1 person.
Capital (max/min): No minimum capital.
Shareholders and liability: Liable for all debts and obligations.
Partnership
Number of partners: 2 persons or more. All partners must be Canadians to be a Canadian partnership.
Capital (max/min): Personal investment but no minimal capital required.
Shareholders and liability: Personally liable for all the debts and obligations of the company.
Limited liability partnership
Number of partners: 2 persons and more. All partners must be Canadians to be a Canadian partnership.
Capital (max/min): Personal investment but no minimal capital required.
Shareholders and liability: Unlimited for general partners and limited for limited partners
A Corporation is a private joint-stock company identified by Ltd or Inc or Co. Public or Private.
Number of partners: One or more partners / shareholders.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to share capital for all shareholders
State owned company, the shares are public
Number of partners: Investing partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited liability. Not liable for the debts, obligations or acts of the company.
Private company majority of shareholders Canadian
Number of partners: No minimum.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited liability. Not liable for the debts, obligations or acts of the company. Cannot sell shares or securities to the general public.
Cooperative
Number of partners: Managed by members
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited liability.
Limited partnership
Number of partners: persons financially involved
Capital (max/min): No minimum required.
Shareholders and liability: The liability of the silent partner to the company and creditors is limited to the amount of capital he invested.
The Competent Organization
Registering a company can be done through the office of a notary or a lawyer. Each province has a provincial or regional office to make registering easier. Numbered companies are registered within 10 days. In Quebec this is the department of the Enterprise Registrar.
Search a Company or a Financial Report
COCANADA
 
Setting Up a Company Canada OECD
Procedures (number) 1.0 5.0
Time (days) 5.0 12.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Canada.
Canada Business

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The Active Population in Figures

201120122013
Labor force 18,700,00018,850,00019,080,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -67.80%66.60%
Men activity rate 73.00%71.50%71.40%
Women activity rate 62.70%61.80%61.90%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Real Estate, Renting and Business Activities 12.7%
Manufacturing 11.9%
Health and Social Work 11.1%
Construction 7.2%
Education 7.0%
Transport and Storage 6.7%
Hotels and Restaurants 6.3%
Agriculture, Hunting and Forestry 2.2%
Mining and Quarrying 1.5%
Electricity, Gas and Water Supply 0.9%
Households with Employed Persons 0.4%

Source: International Labor Organization (ILO)

 
For Further Statistics
Statistics Canada
For Further Information About the Labor Market
Quebec Ministry of Labor
Ontario Ministry of Labor

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Working Conditions

Legal Weekly Duration
Normal hours of work are eight hours per day and 40 hours per week. The maximum weekly working time is 48 hours.
Retirement Age
The Canadian government removed the age of mandatory retirement in December 2011. All Canadian provinces, with the exception of a few thousand public employees in New Brunswick, have abolished the mandatory departure in retirement. Officials and employees of enterprises under federal jurisdiction can now retire at age 70, or even later if they wish. Workers who stop at age 70 (instead of 65 years ago) receive 42% more from the Canadian Pension Plan, the public pension.
Working Contracts
Federal provisions govern contracts of employment in Canada. The Government of Canada has established minimum standards for employment in Part III of the Canada Labor Code, including the minimum wage, annual leave, public holidays, bereavement leave, etc. Collective agreements and individual negotiations supplement these provisions. In addition, each province has its own rules of labor law.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
CAD 1,724 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: CAD 4,142 (source: ILO, 2011);
Gross average monthly wage of women: CAD 3,131 (source: ILO, 2011).
Social contributions
Social Security Contributions Paid By Employers: Employment insurance EI (1.4% up to 584 USD in Quebec and 720 USD for the other provinces), Health insurance RAMQ (2.7%), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.583% for the employer).
The rate of health insurance varies according to the province.
Social Security Contributions Paid By Employees: Employment insurance EI (1.46% up to 584 USD in Quebec and 720 USD for the other provinces), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.416%)
The rate of health insurance varies according to the province.

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Social Partners

Social Dialogue and Involvement of Social Partners
The labor organizations and trade unions are very strong and well structured in Canada. Quebec is the most unionized province. Canada’s labor unions have clashed with the government and corporations on several occasions over the past two years. Canada passed “back-to-work” legislation in March 2012 and May 2012 to end labor disputes. Canada justified introducing the legislation on both occasions as a necessary action to protect the Canadian economy.
Unions
FTQ - Quebec workers federation
CSN - Canada national federation of labor organizations and trade unions
CLC-CTC - Canadian Labor Congress
NUPGE - National Union of Public and General Employees
TCA-CAW - Canada Automobile Workers Union
CUPE - Canadian Union of Public Employees
Unionization Rate
22.9 % of part-time workers, 31.2% of full-time workers, 30.2 % of permanent workers, 25.8 % of non-permanent workers. These rates have dropped in companies of less than 20 employees and in those of 100 to 500 employees. On the other hand, they have risen in establishments of more than 500 employees and those of 20 to 99 employees.
Labor Regulation Bodies
Human Resources and Social Development Canada

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Last Updates: October 2014